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A net worth mortgage program qualifies a borrower based primarily on their overall net worth and assets rather than conventional income documentation, typically offered by B lenders and other alternative lenders for borrowers with substantial assets but limited provable income.
These programs are aimed at borrowers whose declared, provable income is lower than their real financial position — retirees living off investments, high-net-worth individuals, or newcomers with significant assets but no established Canadian income history — where qualifying income alone would understate their ability to carry a mortgage.
Statements for investments, savings, and other assets stand in for pay stubs or tax documents. Minimum net worth thresholds, how assets must be held, and down payment requirements are all set individually by each lender rather than by a single national rule, and these programs are concentrated among B lenders and other alternative lenders.
Asset documentation replaces income documentation: statements for investments, savings, and other assets stand in for pay stubs or NOAs.
Lender-specific thresholds: minimum net worth requirements, and how it must be held (liquid vs. illiquid), are set individually by each lender.
Common among B lenders: mainstream A lenders generally require standard income verification, so net worth programs are concentrated among B lenders and other alternative lenders.
Down payment requirements can differ: some net worth programs call for a larger down payment than an income-verified file, though the specific requirement varies by lender.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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